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ICAC hears cash for Tigers, pollies, opera

Sophie Tarr

Former NSW premier Morris Iemma has told a corruption inquiry corrupt ex-MP Eddie Obeid lobbied him about controversial company Australian Water Holdings (AWH) in 2008, but did not mention any involvement by his son in the company.

Mr Iemma has told the NSW Independent Commission Against Corruption (ICAC) inquiry that in his final months as premier, Mr Obeid called him at home to ask for his help securing favourable treatment for AWH.

"He was concerned that Sydney Water was disadvantaging the company," Mr Iemma said on Monday.

But he did not mention any personal links with the company, nor disclose the fact that his son worked there, Mr Iemma said.

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The ICAC is probing claims Mr Obeid had a secret stake in the firm and that it corruptly billed Sydney Water for lavish expenses and political donations.

The inquiry has heard evidence the Labor party's rightwing Terrigals faction had a plan to "move on" Mr Iemma in exchange for a lucrative new government agreement with AWH.

"I had not heard that before," Mr Iemma said.

Mr Obeid's lawyer Stuart Littlemore QC said talk of any such plan was "ludicrous".

"It wasn't as if there was eight weeks of a move against you within the Terrigals," he said.

Mr Iemma laughed and replied: "There was a long-running leadership tussle. The speculation had been around for some time and the manoeuvring for some time."

Also on Monday, an ex-chief financial officer for AWH told the inquiry he was invited to attend just one board meeting and that chief executive and Liberal fundraiser Nick Di Girolamo occasionally dictated his reports.

Bruce Chadban says he joined the firm after Mr Di Girolamo assured him money was "not a problem".

But on day one in the job, Mr Chadban heard a different message: "We think we're running out of cash."

"I thought, `what've I gotten myself into?'," he told the ICAC on Monday.

Documents tendered to the inquiry on Monday show that a "two-dollar shelf company", Australian Water Pty Ltd, was receiving hundreds of thousands of dollars from AWH - then known as Rouse Hill Infrastructure Consortium.

Australian Water in turn supported causes including the Wests Tigers NRL team, both sides of politics and the Italian Opera Foundation.

When Mr Chadban approached Mr Di Girolamo, his diary suggests, he was told the company "(had) always, will always obtain funding from Sydney Water".

"It wasn't until May 2009 that I was asked to write a report to the board," he said.

"The CFO reports on occasion were dictated to me by Nick Di Girolamo."

Mr Chadban said at one stage AWH was unable to pay superannuation and tax debts.

Yet in April 2009, Mr Di Girolamo told him to start sending payments to a company called EightByFive.

Mr Chadban was told the money was for PR services but it has been alleged EightByFive was actually a Liberal-linked slush fund.